Vattenfall customers pay an average of two tenths more despite lower VAT | living

After 1 July, customers at energy supplier Vattenfall with a variable contract will pay an average of 20 euros per month more expensive for their electricity and gas. They will not notice anything of the temporary lower VAT on energy that will take effect on the same date.

Prices on the energy markets have risen sharply in recent months and the company partly passes on these higher costs. Earlier this week, competitor Essent announced that it would increase the variable rates for gas and light by an average of around 50 euros.

“Although we find it annoying to also have to implement an increase, the expectation is that our rate will remain well below the market average and the current supply of new energy contracts. Our variable rate customers benefit from the fact that Vattenfall has smartly purchased the energy for them,” the energy company reports.

On 1 July, the VAT on energy will be reduced from 21 to 9 percent. The measure to alleviate the pain of the energy crisis will last until January 1, 2023. Depending on the consumption, this will save a few tens to hundreds of euros. Vattenfall previously foresaw that the VAT reduction would at most lead to a less sharp increase in the rate.

Cheaper

For customers with a fixed-price contract, nothing will change, except that the VAT will be reduced as a result of government interventions to ease the pain of high energy prices. They are therefore slightly cheaper, until their permanent contract also expires.

How much people will actually pay extra after 1 July ultimately depends on the type of home. Customers will be notified about this in the coming weeks. Vattenfall assumes 1200 cubic meters of gas and 2250 kWh of electricity for the average consumption of households.

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